A History of Taxation Practices, Part Seven: Taxation and The Revolution
W. Marc Gilfillan, CPA, NC, individual and business CPA and Tax expert, shares about the history of taxes…
There has been no other revolution that was more solidly rooted in tax problems. Tax issues didn’t just cause it, but helped unify the unorganized and squabbling colonies. However, maybe not precisely the way you might imagine. If you’re feeling the pressure with today’s taxes, call a CPA for Tax Preparation in Raleigh, NC for all your tax-related needs!
First, the British taxation on the colonies were neither not fair nor oppressing on the people. In fact, Americans had it great: we had the protection of the British empire, the land was fertile, business was good, and there were jobs for everyone. Europe’s social structures did not enchain us and our sons were not forced to battle in wars in far-off places… we had it good. So what happened? Well, some missteps and misstatements by each side. Go here if you want help with a modern-day Tax Return in Raleigh, NC.
“Taxation without representation” was truly an issue. The problem was, no one knew quite what to do about it (after the American revolution, other colonies such as Canada and Australia were able to find more achievable solutions). But at this point in history there wasn’t agreement by the British parliament or American leaders on what should be done to avoid “taxation without representation”. Ben Franklin, unknowingly I presume, complicated the issue. He went over to England as our spokesman and said that internal taxes were unacceptable but external taxes were OK.
By internal taxes, Franklin meant the stamp tax and other taxes that were paid on transactions within the colonies themselves. External taxes, according to colonists’ definition, were those like import taxes that were on transactions that only partially took place within the colonies. They believed import taxes were external to the colonies. Yes, if you’re confused about this, you ought to be. It makes almost no sense. Apparently no one understood the connection with import/export taxes and the final prices paid for the products. In other words, import/export taxes worked against the “other guy” so they were OK.
OK, said the British parliament. if that’s what you desire we’ll play along and give you whatever it takes to make you happy. So, the British created new tariffs, import and export taxes. Then, Americans decided they made a mistake. They saw the folly of their reasoning… but it was too late and the issue got worse.
Keep an eye out for W. Marc Gilfillan’s next chapter in his History of Taxes series: Taxes and the Boston Tea Party.
http://www.marccpa.com/
Mail this post
Tags: accountant, bookkeeping, cpa, income tax, marc gilfillan, NC, raleigh, tax, tax preparation, tax return, taxes
Leave a Reply